ROCKFORD, Mich. (AP) — Wolverine Worldwide's net income dropped 19 percent in the third quarter, hurt by softness in Europe and increased costs.
The footwear and clothing company, whose brands include Hush Puppies and Merrell, cautioned Tuesday that the weak conditions in Europe are likely to continue.
Wolverine's quarterly performance fell short of Wall Street's expectations and it lowered its full-year forecasts.
The stock declined $1.11, or 2.6 percent, to $42.30 in premarket trading.
Wolverine Worldwide Inc. earned $32.7 million, or 66 cents per share, for the period ended Sept. 8. That's down from $40.4 million, or 82 cents per share, a year ago.
Stripping out 6 cents per share related to its buyout of Collective Brands Inc., earnings were 72 cents per share.
Analysts surveyed by FactSet predicted earnings of 73 cents per share.
Wolverine Worldwide Inc. and private investment firms Blum Capital Partners and Golden Gate Capital announced last week that the approximately $2 billion acquisition of Collective, which owned the Payless and Stride Rite chains, had been completed.
Revenue fell 2 percent to $353.1 million from $361.6 million, pressured by foreign currency exchange rates. This missed Wall Street's $362.7 million estimate.
Gross margin dropped partly on increased product costs.
For the year, Wolverine now anticipates adjusted earnings of $2.26 to $2.31 per share on revenue in a range of $1.43 billion to $1.44 billion. Accounting for the Collective transaction, revenue is predicted between $1.65 billion and $1.66 billion.
Wolverine's prior guidance was for earnings of $2.70 to $2.80 per share on revenue in a range of $1.46 billion to $1.5 billion. Including acquisition-related expenses for the year to date, the company previously forecast earnings of $2.64 to $2.74 per share.
Analysts expect earnings of $2.41 per share on revenue of $1.58 billion.